UBS Cuts Oracle (ORCL) Target but Sees Funding Clarity as a Catalyst

Oracle Corporation (NYSE:ORCL) is one of the 10 AI Stocks Analysts Are Watching. On February 2, UBS analyst Karl Keirstead lowered the price target on the stock to $250.00 (from $280.00) while maintaining a Buy rating. The firm sees ORCL’s recent funding clarity as a potential catalyst despite equity dilution concerns.

“Right ahead of a planned debt issuance, Oracle press-released some incremental disclosures about its funding needs in 2026, required to finance the build-out of AI infrastructure.”

Oracle recently announced that it will raise an estimated $45 billion to $50 billion in calendar 2026 through a combination of stock sales and debt. This move, the company said, reflects on its commitment to maintain an investment-grade rating amid the AI spending.

In particular, the company has outlined plans for a debt raise of only $20-25 billion coupled with an equity raise of up to $20 billion. The firm noted how the planned debt component may be viewed positively by credit investors.

However, the equity raise portion, previously described as a last resort by the company, may not receive the same warm reception from all equity holders.

“We are Buy-rated and wonder if this long-awaited clarity may serve as a clearing event for the stock.”

Oracle Corporation (NYSE:ORCL) is a database management and cloud services provider.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.